Why the Doctor Care Anywhere (ASX:DOC) share price is up 62% since December

The Doctor Care Anywhere Ltd (ASX:DOC) share price has risen a remarkable 62% since its IPO in December. Its full year result shows why…

| More on:
A young woman smiling and looking happy, indicating a positive share price movement on the ASX market

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Doctor Care Anywhere Ltd (ASX: DOC) share price failed to continue its positive run on Thursday despite the release of a strong full year result.

The telehealth company's shares ended the day flat at $1.30.

Despite this, the Doctor Care Anywhere share price is up over 62% since its IPO in December.

How did Doctor Care Anywhere perform in FY 2020?

For the 12 months ended 31 December, the company reported a 102% increase in revenue to 11.6 million pounds. This was 5.8% ahead of its prospectus forecast.

Management advised that its strong revenue growth was driven by a 306% increase in consultations through its platform and a 199% increase in activated lives (active customers).

On the bottom line, Doctor Care Anywhere reported a loss before interest and tax of 9.6 million pounds and a net loss of 31.3 million pounds. This was driven by costs associated with the company's IPO and fair value finance charges in respect of convertible loan notes.

At the end of the period, the company had a cash balance of 38.4 million pounds.

Management commentary

While the company didn't comment on its results today, it previously spoke about them with its fourth quarter update.

Doctor Care Anywhere's CEO, Bayju Thakar, said: "We continue to see robust growth in consultation volumes across all channel partners, as new and existing patients become accustomed to adopting digital healthcare into their everyday lives. Consultations have grown over 300% on the prior corresponding period and this demand has helped deliver positive financial outcomes for DOC while demonstrating that we are providing a much-needed service to patients across the UK and Ireland."

"The pandemic has accelerated a long-overdue digitisation of the healthcare industry. Both patients and healthcare practitioners are growing more comfortable with remote diagnosis and treatment. Our patients are benefiting from faster and more convenient access to healthcare. Clinicians are appreciating the flexibility of working at a place and time of their choosing and the efficiency of single electronic health records stored in the cloud. Our insurance partners are also seeing the cost savings that can be achieved by controlling the patient journey and reducing unnecessary interventions."

Outlook

In respect to the year ahead, the company's focus remains firmly on increasing activations and consultations across its existing membership base.

It also intends to continue growing its membership base through new channel partner agreements and adding higher margin diagnostic referral pathways and services such as mental health.

This is part of its overall plan to deliver the first truly joined up healthcare experience by 2023.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Doctor Care Anywhere Group PLC. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX was back to the races this Tuesday.

Read more »

A woman reaches her arms to the sky as a plane flies overhead at sunset.
Travel Shares

Why the Qantas share price soared 20% in May to new all-time highs

With another stellar month in May, Qantas shares are up more than 79% in a year.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why DroneShield, Judo, Pepper Money, and Strickland shares are surging today

These shares are having a good session on Tuesday. But why?

Read more »

Yellow rising arrow on a brick wall with a man on a ladder.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough start to the trading week for investors this Monday.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX 200 stock has rocketed 86% since April?

This sky rocketing ASX 200 stock continues to defy short sellers. But how?

Read more »

Five happy young friends on the coast, dabbing and raising their arms in the air.
Share Gainers

The best 5 ASX 200 shares to buy and hold in May revealed

Can you guess which five ASX 200 shares raced ahead of the benchmark in May?

Read more »

A couple sit in front of a laptop reading ASX shares news articles and learning about ASX 200 bargain buys
Share Gainers

Why are Soul Patts shares up 9% today?

A marriage proposal has seen investors flock to this company.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Share Gainers

These were the best-performing ASX All Ords shares in May

These shares caught the eye last month. What was getting investors excited?

Read more »